In-House Creators Get Paid $200k To Make TikToks

In episode #2882, Eric Siu and Neil Patel discuss the significant salaries of in-house creators and the complexities of managing influencer relationships. They break down the ROI of various influencer categories, emphasizing the profitability of micro influencers compared to celebrities. Don’t forget to help us grow by subscribing and liking on YouTube! Check out more of Eric’s content (Leveling UP YT) and Neil’s videos (Neil Patel YT) TIME-STAMPED SHOW NOTES: (00:00) The Rise of In-House Creators (02:56) Influencer Marketing ROI: A Deep Dive (04:46) That’s it for today! Don’t forget to rate, review, and subscribe! Go to https://www.marketingschool.io to learn more! Leave Some Feedback: What should we talk about next? Did you enjoy this episode? If so, please leave a short review. Connect with Us: Single Grain << Eric’s ad agency NP Digital << Neil’s ad agency X @neilpatel X @ericosiu

• 0:00Speaker 00

  Finding customer information shouldn't mean digging through emails, call notes and spreadsheets. HubSpot Starter Plan brings all of those details together, so it's easier to track what's happening with every deal and what to do next. It pulls information from calls and emails. Then it gets to work, logging and summarizing them. Right after your call ends, HubSpot pulls next steps from your call notes and drafts suggested follow-ups. And it stays up to date for you, so you can build demand, win more deals, and spend less time on repetitive work. Your records, insights, and next steps are ready for you to act on. And you don't have to miss a beat searching for any of it. Try the Starter Plan for $10 a month. Learn more at hubspot.com. Did you know that in-house creators are getting paid 200 grand salary to make TikToks?

• 0:41Speaker 01

  That's a crap load of money. That's overpaying.

• 0:43Speaker 00

  Yeah. So, the point is, I think we're gonna see more in-house creators get paid money. You actually had a good Instagram post, I saw it right before I got here, talking about the ROI of influencers.

• 0:53Speaker 01

  But I put a caveat in the text. It takes way more time to manage them, and sometimes you need a dedicated person or a team, just to help you with the micro-influencers, because you have to have so many of them to do it in volume and really make the numbers work. But the ROI is huge. We ended up looking at 46 influencer marketing campaigns, and combined, when you look at all the influencer marketing campaigns, they had 2,808 influencers that were used. And it was funny, some people put in the comments, "Well, the ROI depends on how relevant the influencer is to the campaign that you're promoting." Just as a caveat, as a marketer, you only choose relevant influencers to promote a product.

• 1:31Speaker 00

  You would hope so.

• 1:31Speaker 01

  Yeah. I'm like, I don't know who would use an irrelevant influencer to promote a product. You just lose money. So, we have four categories of influencers. Celebrities, 1 million-plus followers. Macro-influencers, 500 to 1 million. Midsize influencers, 100,000 to 500,000 followers. Micro-influencers, 1,000 to 100,000 followers. For the celebrity followers, million-plus followers, we saw a 59.43% loss. And, uh, that was a cost. That's how much money they lost, right? And we're not looking at revenue, we're actually looking at money lost or gained, as in, loss or profit. For the macro-influencers, 500,000 to 1 million followers, it was a negative 12.04% loss.

• 2:19Speaker 01

  So if you spent $10,000, just to make a number up, yeah, you're collecting all this revenue. You're collecting more than $10,000, but then there's a cost of your product or service and your team, etc. And after all the costs, they lost 12.04%. So in that case, their loss would have been $1,204, just to keep the math simple. With midsize influencers, 100,000 to 500,000, they saw a gain of 13.98%. And this was their profit. So if you spent $10,000 or $100,000, it would just be 13.98% of that being on average profit.

• 2:57Speaker 01

  With micro influencers, 1,000 to 100,000 followers, whatever they spent, including their internal cost of their team managing these micro influencers, technically all of them, celebrities, there wasn't, with the larger campaigns, there wasn't, really wasn't too many in-house people that are managing the process. But midsize and micro, there were people managing internally in most cases. But for micro influencers, they saw profitability of 36.71%. The big thing here that I put in the comments or I put in the notes that most people don't realize, when you work with celebrity-based influencers or people with big followings, they're super picky. They don't try hard to promote the product. They'll say, well, they want to keep something up only for four hours and delete it.

• 3:40Speaker 01

  They don't want you to use their name and image and photos on their, on your landing pages. They don't want to go above and beyond and also create stories to promote it. A lot of them have egos, they don't care, they just want quick cash and leave. When you work with micro influencers, they leave up the content, they try super hard. They'll go back and forth and try to create amazing creatives and put in like 110% effort because they want to keep working with you and get more business. And on top of this, not only will they leave it up, a lot of them are really flexible on payment terms. They'll do affiliate-based where it's promotion-based, they'll let you use a name and image and all that kind of stuff on the landing page. So it's just much easier to make a profit, profit because they're so flexible.

• 4:23Speaker 01

  Celebrities and macro influencers, a lot of them have egos and they're hard to work with.

• 4:27Speaker 00

  If you're an agency owner and you want to grow faster. Faster, check out the Agency Owners Association. That's hosted by my podcast co-host Neil Patel and myself. And we have other agency owners that are doing eight figures a year. They were doing nine figures a year. They sold their business for hundreds of millions of dollars. And they're going to share their experiences with you. There's a whole host of other benefits. And the cool thing is that there's a seven day free trial. And you should check it out now because we're going to take the prices up. So just go to marketing school.io slash agency to learn more and we'll see you inside. Yeah, and well, once you've made it already, quote unquote, you care a lot less. But in the very beginning, you care a lot more. Yes. And that's just how it is. That's how that's how the human mind works.

• 5:02Speaker 01

  And I'll give you a great example of this. When we tell micro influencers, hey, if we pay you, you got to respond to the comments. When anyone has questions, make sure you're there. They'll do it. Celebrities, people with massive followers, macro influencers, they're like, no, you got to pay us way more if you want this. Like, you can't make the numbers work.

• 5:19Speaker 00

  All right, guys, so that is it for today. Please don't forget to rate, review, subscribe. Go to marketing school.io slash agency. I think the price right now is 199 or so. It's a seven day free trial. We're bumping it up to 399. So depending on when you listen to this, the price may already be at 399. So that being said, goodbye.